Quarter ended 30 June 2015 compared with quarter ended 31 March 2015

REVENUE

Attributable equivalent gold production increased by 7 per cent from 501,300 ounces in the March quarter to 534,700 ounces in the June quarter. All of the operations except St Ives and Agnew/Lawlers produced more gold in the June quarter.

Gold production at South Deep in South Africa, increased by 7 per cent from 1,129 kilograms (36,300 ounces) to 1,203 kilograms (38,700 ounces).

Attributable gold production at the West African operations increased by 13 per cent from 157,300 ounces in the March quarter to 177,800 ounces in the June quarter. Attributable equivalent gold production at Cerro Corona in Peru increased by 25 per cent from 66,300 ounces in the March quarter to 83,200 ounces in the June quarter. Gold production at the Australian operations decreased by 3 per cent from 241,400 ounces in the March quarter to 235,000 ounces in the June quarter due to lower production at St Ives and Agnew/Lawlers.

At the South Africa region, production at South Deep increased by 7 per cent from 1,129 kilograms (36,300 ounces) in the March quarter to 1,203 kilograms (38,700 ounces) in the June quarter despite being negatively impacted by a fatal accident in May 2015. Production was also affected by continued stop and fix initiatives to improve both working conditions and safety. This is evident by a significant improvement in safety performance (TRIFR) from 3.03 year to date June 2015 versus 5.10 in the six months to December 2014.

At the West Africa region, managed gold production at Tarkwa increased by 15 per cent from 135,800 ounces in the March quarter to 156,200 ounces in the June quarter mainly due to higher grades mined and processed. At Damang, managed gold production increased by 6 per cent from 39,000 ounces in the March quarter to 41,500 ounces in the June quarter mainly due to higher tonnes processed.

At the South America region, total managed gold equivalent production at Cerro Corona increased by 26 per cent from 66,600 ounces in the March quarter to 83,600 ounces in the June quarter. This increase was mainly due to higher gold and copper head grades.

At the Australia region, St Ives’ gold production decreased by 10 per cent from 98,700 ounces in the March quarter to 89,200 ounces in the June quarter mainly due to lower throughput relating to completion of processing of Neptune stockpiles, partially offset by higher grade. At Agnew/Lawlers, gold production decreased by 10 per cent from 59,600 ounces in the March quarter to 53,800 ounces in the June quarter mainly due to lower grades mined and processed. At Darlot, gold production increased by 55 per cent from 11,200 ounces in the March quarter to 17,400 ounces in the June quarter mainly due to higher tonnes mined and processed as well as higher grade. At Granny Smith, gold production increased by 4 per cent from 72,000 ounces in the March quarter to 74,600 ounces in the June quarter due to higher volumes and grades mined.

The average quarterly US dollar gold price achieved by the Group decreased by 2 per cent from US$1,198 per equivalent ounce in the March quarter to US$1,174 per equivalent ounce in the June quarter. The average rand gold price increased by 1 per cent from R457,031 per kilogram to R463,082 per kilogram. The average Australian dollar gold price decreased by 1 per cent from A$1,550 per ounce to A$1,527 per ounce. The average US dollar gold price for the Ghanaian operations decreased by 2 per cent from US$1,218 per ounce in the March quarter to US$1,196 per ounce in the June quarter. The average US dollar gold price, net of treatment and refining charges, for Cerro Corona increased by 6 per cent from US$1,021 per equivalent ounce in the March quarter to US$1,083 per equivalent ounce in the June quarter. The average US dollar/Rand exchange rate weakened by 3 per cent from R11.71 in the March quarter to R12.06 in the June quarter. The average Australian/US dollar exchange rate weakened by 1 per cent from A$1.00 = US$0.79 to A$1.00 = US$0.78.

Revenue increased by 8 per cent from US$610 million in the March quarter to US$660 million in the June quarter due to higher gold sold, partially offset by the lower gold price achieved. Equivalent gold sold increased by 10 per cent from 508,900 ounces in the March quarter to 562,100 ounces in the June quarter. This was mainly due to 34,400 more equivalent ounces sold at Cerro Corona in the June quarter compared with the March quarter, as a result of delays in the shipping schedule at the Salaverry port in Peru in the March quarter.

OPERATING COSTS

Net operating costs increased by 4 per cent from US$366 million in the March quarter to US$382 million in the June quarter mainly due to the higher production.

At the South Africa region, net operating costs at South Deep increased by 11 per cent from R634 million (US$54 million) in the March quarter to R705 million (US$59 million) in the June quarter. This was mainly due to higher production, planned annual salary increases effective 1 April 2015 and higher electricity costs due to the tariff increase and one month of winter tariff.

At the West Africa region, net operating costs increased by 9 per cent from US$125 million in the March quarter to US$136 million in the June quarter. This increase in net operating costs was mainly due to an increase in volumes at both mines, as well as a drawdown of inventory of US$6 million compared with a build-up of US$4 million in the March quarter.

At the South America region, net operating costs at Cerro Corona increased by 54 per cent from US$28 million in the March quarter to US$43 million in the June quarter mainly due to higher volumes mined and processed as well as a US$5 million drawdown of concentrate at the end of the June quarter compared with a US$5 million build-up at the end of the March quarter.

At the Australia region, net operating costs decreased by 7 per cent from A$200 million (US$158 million) in the March quarter to A$186 million (US$145 million) in the June quarter. This was mainly due to lower volumes at St Ives and a drawdown of inventory of A$1 million (US$nil million) at Granny Smith in the June quarter compared with A$6 million (US$4 million) in the March quarter.

OPERATING PROFIT

Operating profit for the Group increased by 14 per cent from US$244 million in the March quarter to US$278 million in the June quarter due to the increase in revenue, partially offset by the higher net operating costs.

AMORTISATION

Amortisation for the Group was similar at US$142 million.

OTHER

Net interest paid for the Group decreased by 21 per cent from US$19 million in the March quarter to US$15 million in the June quarter. Interest paid of US$21 million, partially offset by interest received of US$2 million and interest capitalised of US$4 million in the June quarter compared with interest paid of US$26 million, partially offset by interest received of US$2 million and interest capitalised of US$5 million in the March quarter.

The share of equity accounted losses of US$1 million in the June quarter compared with US$3 million in the March quarter and mainly related to the ongoing study and evaluation costs at the Far Southeast project (FSE). The March quarter included the Group’s share of losses at Hummingbird of US$2 million and ongoing study and evaluation costs at FSE of US$1 million.

The loss on foreign exchange of US$2 million in the June quarter compared with a gain of US$2 million in the March quarter. These gains and losses on foreign exchange related to the conversion of offshore cash holdings into their functional currencies.

The gain on financial instruments of US$2 million in the June quarter compared with a loss of US$3 million in the March quarter and related to the mark to market adjustment on the diesel hedges that the Australian operations entered into on 10 September 2014 and 26 November 2014.

Share-based payments for the Group were similar at US$3 million. Long-term employee benefits decreased from US$3 million in the March quarter to US$nil million in the June quarter due to mark to market adjustments. Together, the two schemes decreased from US$6 million to US$3 million.

Other costs for the Group decreased from US$10 million to US$9 million.

EXPLORATION AND PROJECT COSTS

Exploration and project costs increased from US$13 million in the March quarter to US$19 million in the June quarter mainly due to higher expenditure at Salares Norte. Expenditure at Salares Norte increased from US$3 million in the March quarter to US$11 million in the June quarter due to the resumption of drilling activities at the project following extreme weather conditions in Chile.

NON-RECURRING ITEMS

Non-recurring expenses increased from US$nil million in the March quarter to US$11 million in the June quarter. The non-recurring expenses in the June quarter included US$7 million on the impairment of the Group’s investment in Hummingbird and A$3 million (US$3 million) related to retrenchment costs at St Ives. The impairment of Hummingbird was recognised in terms of IAS36 – Impairment of Assets. The impairment charge has no cash effect. We believe that Hummingbird should realise its full potential.

ROYALTIES

Government royalties for the Group increased from US$18 million in the March quarter to US$21 million in the June quarter mainly due to the higher revenue in Ghana and Peru.

TAXATION

The taxation charge for the Group of US$43 million in the June quarter compared with US$44 million in the March quarter. Normal taxation increased from US$27 million to US$37 million. The deferred tax charge decreased from US$18 million in the March quarter to US$6 million in the June quarter.

The tax returns for Cerro Corona are filed in Peruvian Nuevo Sol (Soles) and the functional currency for accounting purposes is the US dollar. For accounting purposes the tax base must be converted from Soles to dollars at the closing rate at quarter end. Therefore, the unutilised taxation allowances fluctuate due to movements in the exchange rate between the Peruvian Nuevo Sol and the US dollar. This resulted in a change in the temporary taxation differences for non- monetary assets on translation. This, in turn, resulted in a deferred tax charge of US$5 million arising from the weakening of the exchange rate from 3.09 to 3.17 in the June quarter compared with a charge of US$21 million arising from the weakening of the exchange rate from 2.84 to 3.09 in the March quarter. It has no cash effect.

EARNINGS

Net earnings attributable to owners of the parent of US$12 million or US$0.02 per share in the June quarter compared with net losses of US$14 million or US$0.02 per share in the March quarter.

Headline earnings of US$19 million or US$0.03 per share in the June quarter compared with headline losses of US$14 million or US$0.02 per share in the March quarter.

Normalised earnings of US$22 million or US$0.03 per share in the June quarter compared with normalised losses of US$13 million or US$0.02 per share in the March quarter.

CASH FLOW

Cash inflow from operating activities of US$191 million in the June quarter compared with US$150 million in the March quarter. This increase was mainly due to higher operating profit and lower seasonal taxation paid in Ghana and Australia, partially offset by lower release of working capital.

Cash outflow from investing activities decreased from US$179 million in the March quarter to US$161 million in the June quarter. This was mainly due to a decrease in capital expenditure from US$175 million in the March quarter to US$158 million in the June quarter as well as a decrease in environmental payments from US$6 million to US$3 million.

Cash inflow from operating activities less net capital expenditure and environmental payments of US$30 million in the June quarter compared with a cash outflow of US$29 million in the March quarter. This was due to the higher gold sold in the June quarter. The US$30 million in the June quarter comprised: US$74 million generated by the eight mining operations, less US$19 million of interest paid (this excludes any interest paid by the mines), US$12 million for exploration (this excludes any mine based brownfields exploration which is included in the US$74 million above) and US$13 million on non-mine based costs. The US$29 million outflow in the March quarter comprised: US$4 million loss by the eight mining operations, US$20 million of interest paid, US$6 million for exploration mainly at Salares Norte (this excludes any mine based brownfields exploration which is included in the loss incurred by the mining operations above) and US$1 million on non-mine based income.

In the South Africa region at South Deep, capital expenditure decreased from R219 million (US$19 million) in the March quarter to R200 million (US$17 million) in the June quarter. The majority of this expenditure was on the upgrade of Twin Main shaft man and rock winder, development and infrastructure costs as well as the purchase of trackless equipment.

At the West Africa region, capital expenditure decreased from US$89 million to US$52 million. At Tarkwa, capital expenditure decreased from US$85 million to US$48 million with expenditure mainly incurred on pre-stripping. Capital expenditure in the March quarter included US$46 million for fleet replacement. Capital expenditure at Damang was similar at US$4 million.

In the South America region at Cerro Corona, capital expenditure increased from US$7 million to US$12 million. The majority of the expenditure was on the construction of further raises to the tailings dam.

At the Australia region, capital expenditure increased from A$77 million (US$61 million) in the March quarter to A$99 million (US$77 million) in the June quarter. At St Ives, capital expenditure increased from A$32 million (US$25 million) in the March quarter to A$45 million (US$35 million) in the June quarter, with expenditure mainly on pre-stripping and infrastructure establishment at the Invincible open pit. At Agnew/Lawlers, capital expenditure increased from A$20 million (US$16 million) to A$23 million (US$18 million) mainly due to increased exploration costs. At Darlot, capital expenditure increased from A$5 million (US$4 million) to A$8 million (US$6 million) and at Granny Smith, capital expenditure increased from A$20 million (US$16 million) in the March quarter to A$23 million (US$18 million) in the June quarter. This increased capital expenditure at Darlot and Granny Smith was due to increased development and exploration activity.

Net cash outflow from financing activities of US$10 million in the June quarter compared with US$8 million in the March quarter and related to net loans raised and paid. The outflow in the June quarter related to the repayment of offshore loans of US$15 million, partially offset by a drawdown of offshore dollar loans of US$5 million.

The net cash inflow for the Group of US$16 million in the June quarter compared with an outflow of US$50 million in the March quarter. After accounting for a negative translation adjustment of US$3 million on non-US dollar cash balances, the cash inflow for the June quarter was US$13 million. As a result, the cash balance increased from US$402 million at the end of March to US$415 million at the end of June.

ALL-IN SUSTAINING AND TOTAL ALL-IN COST

The Group all-in sustaining costs decreased by 10 per cent from US$1,143 per ounce in the March quarter to US$1,029 per ounce in the June quarter mainly due to the higher gold sold, higher by-product credits and lower sustaining capital expenditure partially offset by the higher gold inventory charge to cost. Total all-in cost decreased by 9 per cent from US$1,164 per ounce in the March quarter to US$1,059 per ounce in the June quarter for the same reasons as all-in sustaining costs as well as lower non-sustaining capital expenditure, partially offset by higher exploration, feasibility and evaluation costs.

In the South Africa region, at South Deep, all-in sustaining costs increased by 1 per cent from R726,648 per kilogram (US$1,929 per ounce) to R734,784 per kilogram (US$1,895 per ounce) due to the higher operating costs, partially offset by lower sustaining capital expenditure and higher gold sold. The total all-in cost decreased by 1 per cent from R774,335 per kilogram (US$2,055 per ounce) to R769,847 per kilogram (US$1,986 per ounce) due to the same reasons as for all-in sustaining costs as well as lower non-sustaining capital expenditure.

At the West Africa region, all-in sustaining costs and total all-in cost decreased by 21 per cent from US$1,299 per ounce in the March quarter to US$1,029 per ounce in the June quarter mainly due to higher gold sold and lower capital expenditure, partially offset by higher net operating costs.

At the South America region, all-in sustaining costs and total all-in cost decreased by 23 per cent from US$493 per ounce to US$381 per ounce. This was mainly due to higher gold sold and higher by-product credits, partially offset by higher operating costs, an inventory charge to costs and higher capital expenditure. All-in sustaining costs and total all-in cost per equivalent ounce decreased by 1 per cent from US$671 per equivalent ounce to US$662 per equivalent ounce.

At the Australia region, all-in sustaining costs and total all-in cost increased by 4 per cent from A$1,240 per ounce (US$978 per ounce) in the March quarter to A$1,288 per ounce (US$1,008 per ounce) in the June quarter mainly due to lower gold sold and higher capital expenditure, partially offset by lower operating costs and a lower gold inventory charge to costs.

FREE CASH FLOW MARGIN

The free cash flow (FCF) margin is revenue less cash outflow divided by revenue expressed as a percentage.

The FCF for the Group for the June quarter is calculated as follows:

The FCF margin of 9 per cent in the June quarter at a gold price of US$1,174 per ounce compared with a negative 3 per cent in the March quarter at a gold price of US$1,198 per ounce.

The higher FCF margin in the June quarter was mainly due to higher gold sold, lower total all-in cost and lower taxation paid, partially offset by higher exploration, feasibility and evaluation costs outside of existing operations.

BALANCE SHEET

Net debt (long-term loans plus the current portion of long-term loans less cash and deposits) decreased from US$1,499 million at the end of March to US$1,477 million at the end of June, a US$22 million decrease.

NET DEBT/EBITDA

The net debt/EBITDA ratio at the end of the June quarter was 1.44 calculated on the actual results for the 12 months ended June 2015.